FG Allocates N45 Billion for Conversion of 30,000 Commercial Buses to CNG in 90 Days

• The federal government plans to spend about N45 billion for the free conversion of 30,000 commercial transport vehicles
• 14 CNG conversion companies have signed agreements with the P-CNGi management to offer conversion services throughout the region.
• The Programme Director and CEO of the Presidential CNG Initiative said that Nigerians will benefit from lower fuel costs compared to petrol

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The federal government, under the Presidential Compressed Natural Gas Initiative (P-CNGi), plans to allocate around N45 billion over the next 90 days to convert 30,000 commercial transport vehicles for free.

Following the initial Park-to-Park CNG conversion rally in Kaduna, where 100 conversion kits were provided at no cost to commercial transport workers, an additional 150 kits have been distributed to members of transport unions in Lagos.

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FG targets 250,000 vehicles' conversion annually

At an event at Biode Motor Park in Ojota, attended by transport union members from the six southwest states, 14 CNG conversion companies signed agreements with the P-CNGi management to offer conversion services throughout the region.

The presidential initiative aims to convert 250,000 commercial vehicles annually with partners in various states.

The estimated cost for each conversion is around N1.5 million, and using CNG is approximately N230 per kilogram, which is over N500 per litre cheaper than petrol.

Nigerians to benefit from lower fuel costs

At the Lagos rally, Mr. Michael Oluwagbemi, Programme Director and CEO of the Presidential CNG Initiative, revealed that the government has procured over 30,000 CNG conversion kits for nationwide distribution within the next 90 days.

He explained that this initiative, introduced by President Bola Tinubu, is designed to alleviate the financial strain on the public.

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Oluwagbemi added that the program aims to expand beyond the initial 30,000 kits to reach a total of one million.

He noted that with the adoption of CNG, Nigerians will benefit from lower fuel costs compared to petrol, which is priced between N750 and N850 per litre, leveraging the country's substantial gas reserves.

He mentioned that the entire country would soon embrace the CNG initiative, highlighting its environmental benefits and its potential to lower food prices.

It would be recalled that President Tinubu recently instructed federal government ministers, departments, and agencies to begin acquiring vehicles powered by compressed natural gas.

Speaking on FG's initiative, Tunde Ogunaike, a social commentator, told Legit.ng that the move marks a significant stride towards sustainable transportation.

He said:

"Compressed Natural Gas (CNG) is a cleaner alternative to petrol and diesel, reducing greenhouse gas emissions and improving air quality. This initiative not only addresses environmental concerns but also promises economic benefits, as CNG is more cost-effective, potentially lowering public transport fares. Additionally, the adoption of CNG buses could reduce Nigeria's dependence on imported fuel, bolstering energy security."

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He added that the success of this initiative hinges on effective implementation, including the development of CNG refuelling infrastructure and ensuring the affordability and availability of these buses nationwide.

Innoson set to produce 30,000 CNG buses

In related news, Legit.ng reported that Innoson Vehicle Manufacturing Company has established a new multi-billion naira facility to produce a range of CNG-powered buses and heavy-duty trucks.

The company, a pioneer in CNG vehicle manufacturing, announced that the plant is capable of producing around 30,000 vehicles annually and will be inaugurated soon.

The expanded lineup now includes medium, city, and inter-city SUVs, family vehicles, purpose-built 4x4 pickups, military vehicles, and specialized units such as ambulances and trucks.

Source: Legit.ng